HR, Nordic, Outsourcing, Trend, Human Resources, Management

Personec: HR outsourcing trend strengthens in the Nordic region

More and more large companies have outsourced their human resources management. In addition to cost savings, the reason behind the outsourcing decision is often the wish to concentrate on personnel development instead of management routines.
 
Over EUR5 billion is spent on human resources management routines in the Nordic regions every year. Less than ten per cent of Nordic companies, including those in Finland, acquire human resources routine services
from specialized service providers. The corresponding figure in Germany is 30 per cent. In the United States, 60 per cent of companies have found outsourcing the best solution.
 
The figure is also growing rapidly in the Nordic region because savings of 20-30 per cent can easily be gained by allowing an outside partner take over the responsibility for management routines. The saved EUR1-1.5 billion can be used to increase competitiveness as the money is directed to personnel development and training instead of routine tasks.
 
"The Nordic companies use 63 per cent of their human resources management to run routine tasks. Only 37 per cent is used for personnel development and competence management. The figures should at least be the other way round. Hence, more and more companies have outsourced the routines to be managed to an outside partner," says Tero Ansio, Deputy CEO of Personec, the leading HR outsourcing company in the Nordic region. 
 
According to surveys conducted by Personec, the costs accumulated from salary management can even be tenfold, depending on the company. One third of Finnish large and middle-sized companies and public organiZations are not even aware of their salary management costs.

OP Bank Group and DHL have increased their efficiency in salary calculations by outsourcing

OP Bank Group and DHL in Norway, among others, have outsourced their human resources management. In most cases, the outsourcing relates to payroll management. Personec is responsible for the payroll management for 9,000 people at the OP Bank Group, whose objective for the cooperation with Personec is to receive competent service, system development and cost savings. Silja Line outsourced payroll management of its land personnel to Personec.
 
Personec is also responsible for the daily HR tasks relating to employment management for approximately 12,000 workers at TietoEnator. In the Nordic region, this is the first case of outsourcing that concerns human resources management that covers four countries.